Cost of Term Life Insurance in Texas

Term life insurance is a life insurance plan that pays death benefits to the policy's beneficiaries if the insured dies within the insurance policy period. The policy's beneficiaries are entitled to a death benefit as long as the premiums have been paid and the insured had active coverage at the moment of death. In Texas, the amount you pay for Term life insurance depends on factors like your age, health history, gender, lifestyle, and hobbies. A term life policy aims to reduce financial burdens on the insured’s loved ones if the insured dies during a specified term. Typically, an insured's death benefit coverage affects how much they pay for a term insurance policy. For example, if the insured wants to have their kids educated in top universities, the amount they insure as a death benefit must be enough to cover tuition.

There are different term life insurance plans available in Texas, and each has a different pricing model. The type of term life insurance an individual chooses depends on what they hope to achieve with the policy. The cost of insurance varies with the type of plan. If you are getting a decreasing term life insurance policy, you are likely to pay less than the cost for level term life or convertible term insurance.

Females are likely to pay less than males for the same amount of death benefits. Studies from the Center for Disease Control (CDC) shows that females have a higher life expectancy than males in Texas. Hence, they are more likely to outlive life insurance policies than males. Like other insurance policies in Texas, the Texas Department of Insurance (TDI) supervises the activities of term life insurance in Texas. The cost of your term insurance plan varies for different reasons. It is best to consult with a Texas-licensed life insurance agent to get accurate and personalized information on how much life term insurance will cost you.

How Much Should I Pay for Term Life Insurance in Texas?

The amount you pay for a term life insurance depends on your age, lifestyle, gender, and health. The insured's age when the policy is purchased affects the cost because older people are more likely to fall ill than younger persons; hence, term life insurance for them costs more. For instance, a 20-year term life insurance with a $500,000 death benefit will cost $263 for a healthy 69 years old male and $39 for a 40-year-old.

Smokers pay more for term life insurance irrespective of the type of term life insurance policy they buy. A smoker, even if healthy, stands a higher chance of getting cancer, high blood pressure, heart diseases, and other health complications. Gender plays an important role in the cost of term life insurance. Generally, females pay lesser premiums than males for similar death benefits. Statistics from the CDC show that females have a higher life expectancy than males in Texas and are more likely to outlive their policies. On average, a 20-year term insurance plan with a $250,000 death benefit will cost a 40-year-old male $39-$45 monthly, while it will cost a female $33-$40. The insured’s health status at the time of purchasing the policy is also a factor in the cost of their premium. For a plan with similar death benefits, a healthy individual will pay less than a person with health issues.

The type of hobbies you engage in also impacts the cost of your insurance. For instance, individuals that indulge in sports like skydiving, scuba diving, cycling, car racing, and other dangerous activities are likely to pay higher premium prices.

Consult a Texas-licensed insurance agent to get insight on how much you should pay for term life insurance.

How to Understand the Cost of Term Life Insurance Insurance?

To understand the cost of your term life insurance, you must have an idea of how the policy works. Your term life insurance cost is the monthly premium you pay multiplied by the policy’s term. Like other types of life insurance products, term life insurance does not have a deductible, nor does it require out-of-pocket payments by the beneficiaries, to make the claim. As the insured you only pay a monthly or yearly premium for the policy’s term. The cost of your insurance policy depends on your:

• Age - Different age categories pay different amounts for similar death benefits. Older individuals between the ages of 49 and 60 years pay much higher amounts than younger people of 18 to 40 years to get term life insurance policies with the same death benefit. This is because an older person stands a higher risk of dying within the policy period than a younger person. For instance, a 40-year-old man on a 20-year $500,000 death benefit term life insurance policy will pay an average monthly premium of $39. In contrast, a 60-years-old will pay $273 as a monthly average for a similar death benefit.

It is important to note that the policy ends when the insured dies. A beneficiary can file a claim if the insured dies within the policy's term.

• Gender - The cost of term life insurance is slightly lower for women; this disparity is due to differences in life expectancies. In Texas, women are believed to have a higher average life expectancy than men, which means that women are more likely to outlive the insurance policy. Based on data from the U.S Census, the average life expectancy of a Texan is 79.2 years. Life expectancy in Texas ranges from 72 years (in Doley County) to 89 years (in Presidio County).

• Tobacco Usage - Your smoking habit will impact the price you pay for a term life insurance policy. The Office of the Surgeon General and the Center for Disease Control and Prevention has warned that smoking may lead to an early death. Smokers are more likely to die of cancer, heart attack, and other health complications. They are also high-risk insurance; hence, higher premiums.

• Health History/Status - An insured with terminal health conditions will pay a higher premium. Insurance companies do not only consider health status at the time of applying for term life insurance, they also consider previous health records. This is done to determine whether there is a possibility of any previous health issues recurring within the insurance policy term.

• Size of Death Benefit/Coverage Amount - The amount insured as a death benefit determines the premium for a term life insurance policy. Generally, the premium increases or decreases with the size of the death benefit. You will pay a higher premium for a $1,000,000 policy than for a $500,000 policy that runs for the same duration. For instance, for a 20-year-old, a $500,000 policy that runs for 20 years will cost an average of $27 monthly, while a $1,000,000 policy will cost $45.

• Convertibility of the policy - If you want an option to later convert your coverage from term to a permanant policy (usually to IUL or Whole life), this adds to the cost.

What is the Average Cost of Term Life Insurance Insurance in Texas?

The cost of term life insurance for individuals living in Texas differs. It depends on age, gender, lifestyle, duration of the policy, and the size of the death benefit. The average monthly premium for males and females ages 25, 40, and 60 years for a twenty-year policy shown in the table below illustrates the difference in cost based on age.

Only a licensed Texas life insurance agent can provide real quotes which can be locked in wight a contract, after collecting your information, and submitting it to the underwriter.

Also, the average monthly premium increases with the length of the term life insurance as shown in the table below. The increase in premium is because the longer the term in years, the more the possibility of the insured dying within the term of the policy.

Estimated Term Life Insurance Average Monthly and Yearly Premium for a 25 year old male in perfect health

Consult a knowledgeable Texas-licensed insurance agent for current and personal rates for term life insurance.

How Much is Typical Term Life Insurance?

Typically, term life insurance costs depend on your age, gender, death benefit, duration of the policy, health history, and habit (you pay more if you are a smoker). The cost of insurance for a particular death benefit is less for younger people. For three males of ages 25, 40, and 60, the table below shows how the monthly premium cost of a $500,000 death benefit term insurance plan varies with age.

The typical cost of term life insurance for healthy non-smokers differs for males and females. For instance, a 20-year term life insurance plan with a $1,000,000 death benefit will cost differently for a man and a woman. The yearly estimated cost for males is $500, while the cost for females is $350.

Furthermore, the cost increases or decreases with the size and duration of the policy. Comparing 10, 20, and 30 years insurance policy terms for $500,000, $1,000,000, and $2,000,000 death benefits shows the variation in the costs.

Estimated “Level Premium” Term Life Insurance Monthly Premium for a 25 year old in perfect health

How Much is Term Life Insurance Premium?

In Texas, the premium you pay for term life insurance depends on your age, health history, lifestyle, nature of your job, and smoking habit. Your premium for term life insurance calculation is expressed as a rate for each $1,000 of the death benefit. You calculate it by multiplying the benefit-cost per $1,000 by your monthly rate.

For instance, for a $1,000,000 death benefit at a rate of $3.50 per month for each $1,000, the premium will be $3,500 ($3.5 x 1,000) monthly premium.

How Much Does Decreasing Term Life Insurance Cost?

The cost of a decreasing term life insurance policy is less than level term life insurance. The decrease in cost results from the reduction in the death benefits as the policy’s expiration date approaches. For example, if you purchase a $500,000 30-year decreasing term life insurance at a 4% reduction rate, your payout death benefit will be reduced annually by $20,000 (4% of $500,000). Though there is a decrease in the benefits resulting in spending less in premiums over the years, the premium you pay remains the same throughout the plan.

How Much Does Level Term Life Insurance Cost?

The cost of level term life insurance does not change. It remains the same throughout the policy term. However, the price of your insurance coverage goes up during policy renewal, since you are now older. A 20-year term life insurance plan with a $500,000 death benefit may cost $20 - $30 per month for 25 years old, and up to $1,000 per month for a 60 year old.

How Much is Convertible Term Life Insurance?

When buying term life insurance, the insurance company may offer the option of converting the policy to permanent life insurance when the plan expires. There is no additional payment in converting a convertible term life insurance policy to permanent life. However, the amount the insured will pay as premium increases by a few hundred dollars as they advance in age. The insurer may offer term conversion credit.

Term conversion credit is a discount an insurance company offers an insured at the point of converting to whole life or universal life policy. This reduction is usually equal to the annual premium of the term life policy and is only for the first year after conversion. For instance, if the term life policy is worth $600 yearly, and you are converting to a whole life policy that costs $5,500, you will pay $4,900 for the first year.

As for the cost of convertible Term Life policy vs non-convertible Term Life, there is an extra cost to having this option. Generally, the annual difference in cost is about $20-$40 per $250,000 of coverage. Make sure to discuss your options with an experienced agent who can shop coverages from the competing insurers.

How Much is Term Life Insurance Usually?

In Texas, apart from age, health history, gender, tobacco use, and lifestyle, the amount you pay for term life insurance also depends on your insured amount. A healthy 20 years old male will pay an average of $21 monthly for a $500,000 death benefit that will run for twenty years. For a woman of similar age, the cost will be lower. Also, smokers and people who indulge in dangerous sports or life-threatening activities like motorcycle racing or car racing, skydiving, and scuba diving, pay higher (if applicable).

How Much is Term Life Insurance Per Month?

In Texas, the monthly premium for term life insurance varies with the duration of the policy. For a 10, 20, and 30 years $500,000 death benefit policy, the average cost of the premium is:

• 10 years plan - $20

• 20 years plan - $29

• 30 years plan - $45

How Much Does Term Life Insurance Cost for Individuals Ages 36 to 45?

In Texas, apart from your gender, health status, lifestyle, and the size of the death benefit, the amount you pay for term life insurance depends on the age group you belong to. If you are a healthy male between the ages of 36 and 45, the insurance company will charge the following estimated premiums for a 20 years plan:

• $18 - $31 per month for a $250,000 death

• $28 - $55 per month for a $500,000 death benefit

• $47 - $75 per month for a $1,000,00 death benefit

For females of the same age bracket, the estimated premium is lower:

• $16 - $26 per month for a $250,000 death benefit

• $24 - $45 per month for a $500,000 death benefit

• $40 - $75 per month for a $1,000,000 death benefit

Insurers consider women a lesser risk when calculating the insurance premium because women generally have a higher life expectancy.

How Much Does a $500,000 Term Life Insurance Policy Cost?

Apart from medical history, age, and lifestyle, the cost of term life insurance also depends on the insured death benefit. For males between the ages of 25 and 60, a twenty-year policy with a $500,000 death benefit costs between $27 and $263 monthly. It will cost between $21 and $190 for females for the same insured amount. Your monthly premium may be higher or lower than the average cost based on other factors.

Consult a state-licensed life insurance agent to get more information on the cost of coverage for the various death benefits available.

How Much Does a $1,000,000 Term Life Insurance Policy Cost?

The cost of your term life insurance increases with the size of the death benefit. If you are a male between the ages of 25 and 60 planning to buy a $1,000,000 policy, you will most likely pay between $45 and $500. For females, the same death benefit will cost between $34 and $350. The reason for the wide price range is that older individuals pose greater risks. It is more likely for a healthy older person to die of natural causes than a younger person.

How Much Does a $2,000,000 Term Life Insurance Cost?

When purchasing term life insurance, it is important to note that your premium goes higher as you opt for larger death benefits. If you are a male between the age of 25 and 60 years, a $2,000,000 term insurance will generally cost between $85 and $975 monthly. These prices of course vary with your gender, health history, and lifestyle.

Consult a knowledgeable Texas-licensed life insurance agent who has access to multiple insurers, to get information on the current costs of the available term life insurance death benefits in your area.

Why is Term Life Insurance so Expensive?

Compared to other types of life insurance policies, term life insurance is among the cheapest policies in Texas. Unlike permanent life insurance that lasts a lifetime, term life insurance is not expensive because it only runs for a specified period of time - “term”. Your term life insurance may be expensive for any of the following reasons:

• Age - Buying a term life insurance policy at an older age will lead to paying a higher premium than when bought at a younger age for the same death benefit.

• Health status/history - A healthy individual will pay less for coverage than an individual with health issues or a history of recurring health problems.

• Habit - Smokers and heavy drinkers pay more because they are more likely to develop heart, lungs, kidney, and liver problems.

• Hobbies - Individuals who engage in dangerous sports like skydiving and car racing risk their lives; hence they pay more for coverage.

• Amount of death benefit - The amount of death benefit the insured wants determines the premium. For instance, a 10-year term life insurance with a $500,000 death benefit costs $20 monthly, while it costs $29 per month if the policy is to run for 20 years.

Note that term life insurance does not have living benefits, which makes it affordable. Living benefits allow the insured to access cash while they are alive. Term life insurance is one of the best options for getting a life insurance plan on a budget to protect your dependents in the event of sudden demise. Term life insurance is usually purchased as the cheapest option to get the most amount of coverage, or as a temporary solution, while the experienced insurance agent designs a permanent life policy that saves money and delivers living benefits.

To get an affordable policy, contact a knowledgeable Texas-licensed life insurance agent to assist you with information on the prices of different coverage policies from different insurers.

Why is my Term Life Insurance so High?

If you are paying a high price for your term life insurance plan, then this may be due to any of these reasons:

• Age at time of purchase - The older you are, the costlier it is to get term life insurance. Younger people pay a lesser premium. Buying a term life insurance plan at old age will lead to you paying a much higher premium. Individuals above 60 years have lower life expectancy than younger ones and are considered high risk by insurance companies. If the insurer expects for you to die during the term of the policy, it must charge more, to recoup the expected loss.

• Health status/history - An individual with a history of a life-threatening illness that may likely reoccur within the policy term will pay more for insurance coverage. Generally, a person who is sick or has a bad health history is considered a greater risk by insurers. Hence, insurers charge higher premiums for such persons because there is a greater possibility that they will not live till the end of the policy term. For example, if the insured has had cancer, it will affect the cost of coverage, even if it is in remission.

• Lifestyle - Activities and habits contribute to the cost.

  • Smokers pay higher premiums than non-smokers because they stand a greater risk of developing life-threatening diseases like cancer and heart attack. Hence, insurers charge higher premiums for such persons.

  • Usage of Marijuana, depending on the amount and frequency may result in a higher cost of coverage or outright denial of coverage.

  • Extreme sports such as skydiving, motorcycle racing, or bungy jumping as a frequent activity will also raise the cost of coverage.

• Gender - The cost of term life insurance is higher for males than for females of the same age for similar death benefits. Males are believed to have a lower life expectancy than females. Insurers consider females less of a risk than males. Hence males pay higher premiums.

• Death Benefit - The rule of thumb is that If your death benefit is high, it will lead to you paying a higher premium than someone with a lower benefit. You do not pay the same amount of the premium for a $500,000 death benefit as you will for $1,000,000 if other conditions are similar.

• Job - Certain types of jobs have a high probability of leading to the death of the workers. Jobs considered high-risk can impact the cost of term life insurance plans. Individuals working at sea, at nuclear sites, and long-distance truck driving may have to pay a higher premium because of the dangers involved in their work.

What Raises and Lowers your Term Life Insurance?

The amount you pay as a premium for term life insurance does not change within the period the policy is active. Irrespective of the type of term life insurance policy you purchase, your premium will not change from the initial amount it was when it was purchased. However, certain factors may increase or lower the amount you pay for coverage.

What Raises the Cost:

• The age of the insured at the time of buying a term life insurance determines how much will be charged as a premium. Younger individuals pay less because they are considered to be in better health conditions.

• An individual with a history of health issues that may likely recur pays a higher premium for coverage. The reason for this is that some health problems may eventually become terminal

• Females pay a lesser premium for the same policy than their male counterparts. Women have a higher life expectancy; hence, insurers consider them a lesser risk to insure than the men.

• The type of lifestyle an individual lives may raise the cost of term life insurance. Smokers, drug addicts, and heavy drinkers pay more premium because they are at high risk of developing cancer, liver cirrhosis, and other health complications.

• Individuals that engage in dangerous sports like motorbike racing, car racing, and skydiving pay higher premiums because of the dangers they are exposed to. These sports involve risk-taking and endangering lives.

What Lowers the Cost:

• Buying the policy at a younger age - The cost of all life insurance increases with age. Individuals who buy the plan at a young age will save on the cost of premium because they will pay less.

• Maintaining good health - Being healthy reduces the amount paid as a premium. Healthy individuals pay less because they do not have health issues or diseases that can lead to sudden death.

• Quitting smoking and reducing alcohol intake - Non-smokers pay less premium for coverage because they stand a lower chance of developing cancer. Likewise, significantly reducing alcohol may reduce premium costs because too much alcohol intake may damage the kidney, which may lead to death.

• Stopping dangerous sports - Insurers consider hobbies that may lead to death when calculating premiums for life insurance policies. Individuals can reduce the costs of their policies by stopping dangerous sports.

• No surrender charge/fee - Unlike other life insurance policies, term life insurance does not charge a surrender fee. A surrender charge is incurred when the insured voluntarily terminates/cancels a policy before the due date. The absence of a surrender charge can save the insured money if they decide to cancel the policy.

However, the premium will increase at the point of renewal or if the insured is buying a new plan at the expiration of the current one. The reason for the increase in premium during renewal is that at the point of renewal, the insured will be older than during the start of the previous terms.

Does Term Life Insurance Go Up after a Claim?

With a term life insurance plan, there is no provision for a living benefit. Hence you do not get the opportunity to make a claim. Only the insured’s beneficiaries can claim the insured’s death benefit at the termination point of the plan. The policy ends and pays out when the insured dies.

Will Term Life Insurance Go Up if my Health Worsens?

Your term life insurance cost does not go up if your health worsens during your policy term. It remains the same irrespective of any change in your health status. The insurance company determines the amount you pay as a premium at the time of purchase. You will pay the same amount throughout the policy’s term.

However, the cost of term life insurance increases as the insured gets older. The cost of the policy increases by a small percentage of the premium as the years go by. The age bracket of the insured determines the percentage increase. For instance, it may increase by 8% of the original cost if the individual is between 25 and 30 years. For persons between 60 and 65 years, the cost may increase by as much as 86% percent of the original premium.

Every time you get a new life insurance policy, your current health gets evaluated. The cost you are quoted at that moment reflects your current age and health facts.

What Happens if a Term Life Insurance Insurer Changes the Premium?

Texas insurance law does not permit an insurer to change the premium for a term life insurance policy during the policy’s term. The insured only pays what was initially agreed upon. Trying to change the premium cost without the insured's consent will likely expose the insurer to a lawsuit.

Consult a Texas-licensed life insurance agent or the Texas Department of Insurance to get more information on what an insurer can and can not do.

What is the Cheapest Term Life Insurance in Texas?

The cheapest of the term life insurance in Texas is the non-convertible decreasing term life insurance policy. Like other types of term life insurance, its premium for death benefit does not change throughout the policy duration. However, with this policy, there is a yearly percentage decrease in the size of the death benefit paid out to beneficiaries in the event of death. The insured is allowed to choose the percentage of the decrease at the time of purchasing the plan. The percentage reduction you select will affect how much you pay as a premium and also the size of the death benefit. If you have a low percentage of an annual decrease, you will pay more. Non-convertibility further lowers the cost.

For instance, if you purchase twenty years of $1,000,000 decreasing life term insurance with a 5% yearly reduction, the death benefit will decline by $50,000 (0.05 x 1,000,000) yearly, until it expires worthless at the end of the term. Such policies are usually purchased to cover specific debt, such as a mortgage. As the years of coverage go by, the mortgage balance goes down, and so does the death benefit of the decreasing term life insurance.

With decreasing term life policy, you save on cost because it has a lower rate due to the limited death benefit. A Texas-licensed life insurance agent who works with multiple insurers can help you compare the prices offered by different insurers before you make a choice.

Does the Cost of Term Life Insurance Go Down Over Time?

No, the cost of your term life insurance plan does not go down over time. Your premium may be high at the time of purchase due to factors like age, gender, health history, type of job, and lifestyle. However, you maintain the same premium throughout the coverage period. There may be a slight reduction in the cost of coverage at the point of renewal or when the policy expires, and you want to buy a new policy if you have made some lifestyle changes. These changes may include:

• Weight loss through regular exercises

• Abstinence from smoking, drinking, and substance abuse

• Quitting high-risk jobs and taking up low-risk jobs

• Abstaining from activities that may lead to death, such as dangerous sports activities like car racing and skydiving

Consult a Texas-licensed life insurance expert who is knowledgeable in term life insurance policies before buying a new term life insurance policy.

How Much Term Life Insurance Do I Need?

Your term life insurance should be able to live up to the purpose you are buying it for. The size of the term life insurance you should be getting depends on you making informed decisions on what your family may need when you are no more. To come to a good decision, you must consider the following:

• Your current financial standing - Your financial status when applying for a term life insurance agent policy should give you an idea of how much of the plan you need. The rule of thumb is that your plan should be at least 10-15 times your annual income, taking the cost of living, dependents, liabilities, and inflation into consideration.

• Your liabilities - Liabilities include both your immediate liabilities and the ones you may incur in the future. One of the aims of life insurance is to pay off the debts of the policy owner. Your family should not bear the burden of the heavy debts you may leave behind. Life insurance is love insurance.

• Your aim of buying the policy - What you hope to achieve with the plan determines how much term insurance you may need. For instance, it may be for your children's education, to maintain the same family living standard, or pay off debts. In all cases, the size of the death benefit must be enough to meet all the needs of the family. This is so that the family can continue to live just like they would if you were alive and taking care of their needs and wants.

• Policy tenure - The duration of your policy is an important factor. Your plan must be able to provide coverage during the most critical period. Your dependents do not get a payout if death happens outside the policy tenure. Your term insurance policy should provide coverage for old age.

• The insurance premium - The size of the death benefit you choose determines the amount you pay as a premium. Higher death benefits come with a higher premium.

Before choosing a term life insurance policy, check with your state-licensed insurance agent to be sure you are getting sufficient coverage based on your needs.

How Much Term Life Insurance Coverage Do I Need?

How much term life insurance coverage an individual needs depends on the amount of death benefit that would be left behind for their beneficiaries and the amount of time for which the coverage is sought. This can be achieved by estimating the amount of money the family or beneficiaries will need to move on in the event of the insured’s sudden death. To ascertain the length of needed term life coverage, consider the following steps.

1. Determine your current obligations - Calculate all the expenses that may arise and need sorting after you die. These expenses may include burial costs, hospital bills, mortgage payments, maybe student loans, and much more.

2. Calculate how much the family will need - Calculate how much your family will need to maintain the lifestyle you wish to leave behind. If you do not want a drop in the standard of life of your family after you are gone, you may opt for a large death benefit. You achieve this by adding your annual income (this includes your social security) and multiplying it by the number of years the policy is to be active. To the figure you got, add your current savings, investments, values of life insurance policies (if any), and the current value of your retirement savings (excluding retirement funds). It is always helpful to take the help of a knowledgeable Texas-licensed agent and share all the financial information to get the best coverage you may need.

3. Calculate your spouse's income - Calculate your partner’s annual income and subtract their yearly income tax from it. If your spouse wants to carry on working after your demise, you can subtract the figure you got from the size of the death benefit you think they may need.

4. Determine your coverage estimate - To get the total estimate of the coverage you need, add up all the figures you got from the previous steps and consider how many years you need to maintain this coverage. Some debts may be paid off sooner than others, so you may not need to have as much coverage for such a long period of time.

Contact a Texas-licensed insurance agent to assist with calculating the estimate of term insurance coverage you may need.

Is it Cheaper to Get Term Life Insurance Through an Employer?

Yes, it is cheaper to get term life insurance through an employer. Some companies offer term life insurance as part of employees' benefits. If you get your term life insurance through your employer, the company may bear some or all of the cost of the insurance plan. However, note that your Texas employer will only pay the premium for the period you are employed with the company.

If you are given an opportunity to purchase a group term life policy which you can keep after you leave this employer, then the cost goes up:

Is it Cheaper to Get Term Life Insurance Through a Group or Association?

No, usually it is not cheaper to get a group term life insurance. The group term life insurance rate is the cheaper option usually only if it is your last option. While groups and associations may allow the members of the organization to get guaranteed rates, based on the age bracket, this coverage is usually much more expensive then you could find through a knowledgeable independent life insurance agent. If you receive life insurance offers sponsored or endorsed by groups, organizations, and federal credit unions - ask an independent life insurance agent to check what they can get for you, and you will likely save 50% or more on annual cost or will be able to increase the coverage by 2 to 10 times, at the same cost.

If your health is so bad that you cannot get life insurance through any other means, or if you are denied coverage outright, a guaranteed group term life may be able to accommodate you, even though at a significantly higher cost. The group rates can be 2 to 5 times higher than a non-group offering. For example, while a 40 year old male may be offered $100,000 term life coverage for a group rate of $50-$70 per month, an agent can most likely find the same coverage for $10-$30 per month, depending on the health rating.

How to Save on Term Life Insurance in Texas?

There are various ways an individual can save on term life insurance, including:

• Getting the policy at a young age - Younger individuals pay less premium for coverage. Getting term life insurance early in life reduces the premium for coverage. Your coverage becomes more expensive as you get older, or if it is bought at an old age.

• Maintaining good health - Term life insurance premium has several rate classes based on the cost of the premium for coverage. The class with the lowest premium (preferred or super preferred rate) is assigned to individuals in the best health conditions. Therefore, maintaining a good health status can help save money on the cost of term life insurance.

• Quitting smoking, excessive alcohol intake, and substance abuse - Apart from cancer, liver, and kidney problems, smoking, alcohol, and substance abuse can exacerbate pre-existing health issues to the point they become terminal. These habits are taken into consideration by the insurance companies when determining the cost of insurance, it causes the cost to be higher. Getting rid of such habits reduces the amount an individual pays for coverage.

• Buying a term life insurance plan with a short time frame - The shorter the duration of the policy, the less the total premium. A 30 years term insurance will cost more than a 20 years policy of the same death benefit. However, buying a term life insurance within a short time frame comes with the risk of not having coverage when it matters most. Term life insurance is considered temporary coverage, to cover the time while you are choosing a permanent policy which can provide living benefits in addition to being useful only after you die.

• Layering your term life insurance plan - Individuals with kids or who plan on having kids can save money by layering their term life insurance plan. For instance, they can buy a 30 years term life insurance plan covering the kids' critical ages before adulthood. As they grow older and are in less need of help, a shorter time frame policy can now be bought to provide coverage.

• Shop around and compare prices - Insurers may offer different prices for the same death benefit. A good way to save money is to find a reliable insurance company that offers cheap rates for term life insurance coverage.

To learn more about how to save on your term life insurance, contact a state-licensed knowledgeable life insurance agent, who has access to multiple insurers and can provide information on the insurance companies that offer the best rates for coverage.

Can you Negotiate the Price of Term Life Insurance?

No, you can not negotiate the price of your term life insurance. You agree on the price you pay as a premium with your insurer at the time of purchase. Insurers consider factors like age, health, type of job you do, and lifestyle when arriving at a price for premium. If you are not comfortable with the price, you can ask for reconsideration/re-rating; some insurance companies allow for reconsideration or re-rating. For instance, if there is an improvement in your health compared to when you applied for the policy, you can ask for reconsideration or re-rating. Re-rating allows the insurance company to re-evaluate your health status, and if there are improvements, it may lower your premium.

While you cannot negotiate the price of term life insurance in Texas, you can shop around and compare multiple quotes.

What is the Best Way to Save on Term Life Insurance in Texas?

In Texas, the best way to save on term life insurance is to get an experienced insurance agent on your case. A knowledgeable insurance professional knows the top insurers and how to structure the policy, to get the lowest cost.

The second best way to save on term life insurance is to buy the plan at a young age. The policy costs more with an increase in age. An older individual pays a higher premium for the same death benefit as a younger person. For example, a 20-year term life insurance policy with a $1,000,000 will cost a 25 years healthy male an average of $45 monthly and $540 yearly. If the policy is to be bought at age 40, it will cost $70 monthly and $840 yearly. Note that this principle applies to both males and females.

Consult with a Texas licensed insurance agent knowledgeable about life insurance and access multiple insurers to help you choose the one with the lowest rate.

What Can I Do if I Can’t Afford Term Life Insurance?

If you can not afford term life insurance, you can reduce the amount of your death benefit to reduce the cost. Also, you may want to decrease your term life insurance coverage length which is the cheapest of the term life insurance plans.

How Do I Get Term Life Insurance if I Have no Money?

If you do not have the money to pay a premium, you can not get term life insurance. To get term life insurance, you need to pay the premium that comes with the plan.

How Much Do you Save by Paying Term Life Insurance Upfront?

Texas term life insurance does not allow upfront payment for premiums. You can not save by paying upfront.

What Discounts aare Available for Term Life Insurance?

The discounts available for term life insurance in Texas are given at the discretion of the insurance companies. Insurers offer discounts after taking the factors that determine the premium into consideration. An insurer may give criteria for qualification for discount. The downside of the discount is you may end up paying a higher premium to meet the set conditions. An insurance company may offer any of the following discounts to the insured where applicable:

• Safety discount - One of the ways to live a longer life is to stay healthy. Insurance companies give discounts to policyholders who maintain good habits that are likely to prolong their lives. Discounts may be given to individuals who do not smoke, drink in moderation, and maintain regular exercise routines.

• Loyalty discount - Most times, there are rewards for being loyal. Term life insurance companies may reward individuals who have kept faith with them over the years.

• Bundling discount - This type of discount is reserved for individuals who maintain more than one type of policy with the same insurer. For instance, an individual with term life insurance may also maintain auto and property insurance with the same company.